The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. AVANIR Pharmaceuticals's current ratio for the quarter that ended in Sep. 2014 was 9.37.
AVANIR Pharmaceuticals has a current ratio of 9.37. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for AVANIR Pharmaceuticals's Current Ratio or its related term are showing as below:
FRA:AV2B'
s Current Ratio Range Over the Past 10 Years
Min: 0.35 Med: 4.14 Max: 10.96
Current: 9.37
During the past 13 years, AVANIR Pharmaceuticals's highest Current Ratio was 10.96. The lowest was 0.35. And the median was 4.14.
FRA:AV2B's Current Ratio is not ranked
in the Drug Manufacturers industry.
Industry Median: 1.86
vs FRA:AV2B: 9.37
AVANIR Pharmaceuticals Current Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of AVANIR Pharmaceuticals's Current Ratio
For the Drug Manufacturers - Specialty & Generic subindustry, AVANIR Pharmaceuticals's Current Ratio, along with its competitors' market caps and Current Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
AVANIR Pharmaceuticals's Current Ratio Distribution in the Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, AVANIR Pharmaceuticals's Current Ratio distribution charts can be found below:
* The bar in red indicates where AVANIR Pharmaceuticals's Current Ratio falls into.
AVANIR Pharmaceuticals Current Ratio Calculation
The current ratio is mainly used to give an idea of the company's ability to pay back its short-term liabilities with its short-term assets.
AVANIR Pharmaceuticals's Current Ratio for the fiscal year that ended in Sep. 2014 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
AVANIR Pharmaceuticals (FRA:AV2B) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
AVANIR Pharmaceuticals Current Ratio Related Terms
Thank you for viewing the detailed overview of AVANIR Pharmaceuticals's Current Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
AVANIR Pharmaceuticals (FRA:AV2B) Business Description
Avanir Pharmaceuticals was incorporated in California in August 1988 and was reincorporated in Delaware in March 2009. The Company is a biopharmaceutical company focused on acquiring, developing and commercializing novel therapeutic products for the treatment of central nervous system disorders. The Company commenced promotion of NUEDEXTA in the United States in February 2011. The Company is also studying AVP-923 for use in different types of neuropathic pain. NUEDEXTA is the first and only FDA-approved treatment for pseudobulbar affect. NUEDEXTA is an combination of two components: dextromethorphan hydrobromide, the ingredient that is harmacologically active in the central nervous system, and quinidine sulfate, a metabolic inhibitor enabling dextromethorphan to reach therapeutic plasma concentrations. The Company currently markets NUEDEXTA to approximately 10,000 physicians and other healthcare providers who specialize in psychiatry, neurology or geriatric medicine and practice in outpatient or long-term care settings. NUEDEXTA may face competition from several products: Antidepressants, including Prozac, Celexa, Zoloft, Paxil, Elavil and Pamelor and others; Atypical antipsychotic agents, including Zyprexa, Risperdal, Seroquel, Abilify, Geodon and others; and Miscellaneous agents, including Symmetrel, Lithium and others. The Company is subject to regulation under the Occupational Safety and Health Act, the Environmental Protection Act, the Toxic Substance Control Act, the Export Control Act and other present and future laws of general application.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
FRA:AV2B has been successfully added to your 